Australian midmarket firms prioritise generative AI adoption

Recent research by SAP indicates that a significant proportion of Australian midmarket businesses are making generative artificial intelligence (AI) a key priority.

The study surveyed 783 organisations in Australia and found that 90% of these businesses consider adopting generative AI as either a medium or high priority. Additionally, 88% are prioritising the adoption of standard AI applications for tasks such as machine learning for data analysis and predictive analytics. Dr. Kim Oosthuizen, Head of AI at SAP Australia & New Zealand, stated, "Business AI is the biggest opportunity for businesses in Australia today. But the benefits of Business AI are not only restricted to larger enterprises. Every organisation can realise the opportunities that AI offers in a relevant, reliable and responsible manner. That isn't just summarising emails and creating images. It's helping us complete the tasks we don't want to do, providing insights quickly and reliably helping solve business problems."

The report highlights that Australian midmarket companies are ahead of global counterparts in implementing AI for monitoring cybersecurity threats, detecting fraud, and gathering market intelligence, with 84% of businesses already using AI tools for these purposes.

Dr. Oosthuizen emphasised the role AI is playing in shaping the financial sector, noting the positive impact on forecasting and analysis, fraud detection, and compliance. "We're seeing strong interest and adoption in AI from financial departments among Australian businesses as the technology drives great efficiencies and cost controls," Oosthuizen added, highlighting areas where AI facilitates intelligent process automation, thereby freeing up resources for decision-making.

Despite the enthusiasm for AI, Australian midmarket businesses are facing internal challenges such as supply chain disruptions (38%), business siloes (35%), lack of integration between systems (34%), and insufficient change management processes (33%). Additionally, data-related risks remain a concern, with businesses wary of acting on incorrect information (35%), finding and retaining talent (33%), and ensuring data quality (33%).

Successful Australian midmarket businesses are focusing on technology investment to overcome these hurdles, particularly through outsourcing systems to managed service providers and moving software systems to the cloud. In contrast, companies with lower revenue growth are prioritising investment in new analytics products, building in-house software tools, and new business systems.

Dr. Oosthuizen remarked, "For Australian businesses to continue thriving, pace and operational cost efficiencies are paramount, which requires a move to the cloud. When our customers are in the cloud, they access latest technologies faster and take immediate advantage of SAP Business AI."

Oosthuizen also highlighted the importance of partnering with technology experts, saying, "We deliver our technology in collaboration with our partner ecosystem, ensuring businesses are applying AI in the right ways, and utilising managed service providers should they require extended IT teams. It's about taking the worry out of AI model creation and implementation, so our customers can quickly adopt the burgeoning technology and bring out their best."

This research underscores the pressing need for Australian midmarket businesses to adopt AI solutions as they navigate growth and operational challenges within a competitive global market environment.